Petaling Jaya: Despite experiencing pure foreign equity outflow, the Malaysian capital market improved most of its regional counterparts in 2024.
This flexibility was motivated by strong purchases from the recovery of many local institutional investors, stable political and macroeconomic conditions and major currencies.
According to the Annual Report 2024 of the Securities Commission, the total capital market size expanded to 9.7% year-by-year RM4.2 trillion in 2024, inspired by an increase in both equity market captilation and Total Bond and Sukuk.
The domestic capital market has increased by an average annual rate of 5.5% since 2020, with Bonds and Sukuk increased by 7.1% per year, while the equity market captivity has increased by 4.0% per year.
In parallel, the Islamic Capital Market (ICM) recorded an increase of 8.5%, reaching RM2.6 trillion in 2024.
SC stated that since 2020, the total ICM has increased by an average annual rate of 5.3%, which is inspired by an increase of 7.1% in Sukuk and 3.6% increase in Syariah-Equisition Equities.
The total funds in equity and bond markets increased by 2023 from 2023 to 8.7% compared to RM127.7 billion raised in the previous year, which increased to RM138.9 billion compared to RM127.7 billion. It was primarily inspired by a significant increase in primary funds raising activities, including record-breaking 55 early public offerings, as well as with constant speed in bonding and binding.
The way of alternative financing continued to support micro, small and medium enterprises as well as middle-level companies, increasing RM4.1 billion in 2024. This development was largely attributed to the strong performance of colleagues to colleagues from colleagues, as the ongoing measures were implemented to increase access to capital for all sizes.
Meanwhile, the funds of the fund management industry under management crossed the RM1 trillion, registering a growth of 9.6% for the RM1.07 trillion. This expansion was mainly inspired by strong performance in global equity markets.
On the enforcement side, SC received a total of 8,501 cases in 2024, including 3,910 complaints and 4,591 inquiries, with 5,318 cases represented by 2023 to 60% increase.
The market regulator stated that the growth was primarily inspired by unlicensed activities and scams, which was responsible for 51.4% and 62.2% respectively in total complaints and inquiries. “Complaints and inquiries on scams and unlicensed activities are continuously increasing, with an increase of 337% from 2019 to 2024,” it said.
While the overall growth seems worrying, SC said that it is encouraging that more people are reporting scams and unlicensed activities without falling to the victim before going to the Commission.
SC said that through complaints and inquiries, it attained insight into prevailing trends and emerging modas operandies. This, in turn, allows to take the necessary interventions faster to curb illegal activity and prevent more people from falling.
Meanwhile, till 31 December, 2024, according to the Commission, there were a total of 62 active investigation cases.
SC Annual Report 2024 said the investigating officers recorded statements from 373 persons, from which professionals such as investors/account holders, investment bankers, auditors and lawyers, as well as senior management of employees, directors and public-list companies were received from senior management.
“This reflects the active investigation of the SC that targets securities fraud and corporate misconduct,” it said.
Additionally, SC conducted a range of raids at 14 places across the country to collect documentary evidence for the ongoing investigation. According to SC, these operations were completed with adequate cooperation from individuals and companies involved.
